Lower wages, increased cost of living, and unexpected layoffs are causing many families to reconsider their life insurance coverage.  While cancelling your policy may offer short-term relief, the immediate expenses (i.e. burial, funeral, estate taxes) that arise from the death of a breadwinner can be devastating.   Before cancelling your policy, try these cost reducing strategies.   

Switch to Term Insurance
Term insurance provides a set amount of coverage for a specified period of time or term. These terms range from 10 to 30 years with few companies offering longer or shorter terms. With term insurance, you can buy a large amount of coverage for a relatively low premium.  This type of coverage works similar to car insurance in that you pay a company for the assurance that upon an agreed event they will pay a set amount of money.  At the end of the term, you have the choice to renew at a higher premium or switch to a policy that will cover you for the remainder of your life. 

Review Your Coverage
Your life insurance needs may change overtime. As you grow older, your family may not require the same level of financial support, resulting in a decrease in your financial responsibility.  Your children grow up to take care of themselves, you pay off your mortgage, and ideally, you have eliminated your consumer debt.   You would then only need insurance to take care of your funeral expenses and maybe your estate taxes.   Another event that may reduce your coverage needs is if you purchased an amount of insurance that was large enough to cover your child’s education and your child has since graduated or received a full scholarship. There are dozens of life changes that spark a change in your insurance needs.  Before cancelling your policy, look to lowering your premiums by reviewing the amount of coverage you need.  .   

Revisit your health
Health is to insurance underwriters as credit reports are to lenders.  An unhealthy 40 year old, will pay a much higher premium than a healthy 40 year old.   If you have quit smoking or lost a significant amount of weight since you applied for insurance, these changes need to be discussed with your provider as they may trigger a rate reduction. . 

Shop Around
Life insurance quotes are at our fingertips. The days of waiting for the insurance man to come knocking on our door are long gone.  You now have the ability to go online and request a free quote from all of the major insurance companies.   If you find less expensive coverage call your current provider and let them know you’re considering making a switch.   Explain to them that you want to keep the coverage but are having a hard time fitting it into your budget.  This should motivate them to search for a solution that fits your needs and budget.  

Ask For Help
If there are, persons who’s finances will be greatly impacted if you pass away without proper protection you can request that they pay your premiums until you’re able to do so. This is especially true of young adults whose parents will be left to foot the bill if something were to happen.   When called upon, parents may gladly take over premiums to ensure they are not in a bind if something unexpected were to occur. 
 
Life insurance is one of the last testimonies to your family that you care. Don’t let the pressures of your current expenses cause you to forget.

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